Q: What are your general thoughts on the transportation sector in light of the current economic cycle and specifically TFII as a stock to accumulate over time. Within transportation, would you favour TFII over the railways for growth.
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5i Research Answer:
We have some other TFII comments this morning also. We think as long as we do not see a deep recession and interest rates do in fact fall, the sector should see some recovery next year. TFII has used prior downturns for acquisitions and we might expect that as well as a potential catalyst. With its larger decline, it likely could outperform the rails, in a recovery.